2. Enterprise Directorate General European Commission The EU Framework for a Competitive Pharmaceutical Industry for the Benefit of the Patient European Health Forum - 1 October 2003 James Copping

3. Summary of Presentation Overview of challenges Approach Commission is taking –Pharmaceutical Review –G10 Medicines Next Steps

4. Pharmaceutical Policy Objective: To create the conditions that will allow the EU-based pharmaceutical industry to thrive so it can play a full role in ensuring that we can provide the highest level of health protection to European citizens.

5. Challenges EU-based industry losing ground to US –US has overtaken EU in development of new chemical or biological entities –Europe’s share of world market fallen to 26.7% - US grown to 40.2% since mid 96 –US R&D spending grown at twice the rate of EU –NCEs as a %age of sales - US rose to 70% in 1995-99 - EU static at 18%

6. Pharmaceutical Review Two key objectives:  Guarantee a high level of health protection for European Citizens èIncrease availability of innovative medicines èEncouraging the development of generic competition.

7. Pharmaceutical Review Key measures: Support innovation - data exclusivity Generic competition - “Bolar Provision” Access to market & patients –scope of Centralised Procedure –speeding up assessment times –fast-track

8. Pharmaceutical Review Milestones: 29 September - Council adopts common position 8 October - Parliament starts 2nd Reading Spring 2004 - Final adoption

9. G10 Medicines “review the extent to which current pharmaceutical, health and enterprise policies achieve the twin goals of both encouraging innovation and competitiveness and ensuring satisfactory delivery of public health and social imperatives” (G10 Terms of Reference)

10. G10 Medicines - History March 2001 - G10 Created May 2002 - Report July 2003 - Communication December 2003 - Council Conclusions 2004 - Implementation

11. G10 Medicines - Communication Benefits to Patients Developing a Competitive European-based Industry Strengthening the EU Science Base Medicines in an Enlarged Union Member states Learning from Each Other

12. G10 Medicines - Implementation Part 1 - Existing mechanisms Pharmaceutical Review Public Health Programme 6th Framework Programme Biotechnology Strategy

13. G10 Medicines - Implementation Part 2 - Working with Member States Benchmarking EU reflection on pricing Information to Patients Relative Effectiveness

14. Conclusion “The pharmaceutical sector makes a substantial positive contribution to the EU trade balance. It is a key source of high quality jobs which helps to sustain our science base. However, most importantly of all, a successful, thriving industry will deliver major benefits to patients.” Erkki Liikanen: June 2002